Recent Posts

About

Vodafone Group (VOD), the world's largest mobile communications company by revenue, said Wednesday that it agreed to sell its entire 3.2% stake in China Mobile (CHL), for £4.3 billion (about $6.5 billion) before taxes and costs.

"Today's transaction achieves a near doubling of Vodafone's original investment in China Mobile and combines our stated portfolio strategy with ongoing cooperation with China's leading telecommunications company," Vittorio Colao, CEO of Vodafone, said in a statement. Vodafone made its original investment in China Mobile in 2000.

Both companies will continue to cooperate in areas such as roaming, network roadmap development, multinational customers and green technology, the statement further said.

The U.K.-based mobile telecom giant said it will return approximately 70% of the net proceeds to shareholders by way of a share buyback, with the remainder used to reduce the Group's net debt.

Since Colao took the top job in the company, investors have been expecting he would sell and divest assets as the company tries to improve its value through a new strategy of exiting non-strategic minority investments, as Reuters reported. According to Bloomberg, Colao has said Vodafone is reviewing all its minority stakes. And China Mobile was deemed the easiest stake to dispose off, an analyst told MarketWatch.

Vodafone also owns 45% of Verizon Wireless, with Verizon Communications (VZ) owning the rest. Disposal of this stake, as well as its 44% stake in SFR, could prove more difficult. The company might be looking for increased dividends rather than disposal, analysts told Bloomberg.

Vodafone has agreed to sell its entire holding of some 642.9 million shares in China Mobile by way of an accelerated bookbuilt offering. Goldman Sachs, Morgan Stanley and UBS are acting as lead managers and bookrunners.

Shares in Vodafone dropped 0.6% on the London Stock Exchange after the announcement, while shares in China Mobile closed down 3.8% in Hong Kong.

Increase your money and finance knowledge from home

Bonds for Beginners

Income Investing

Add a Comment

1 Comment

Filter by:

bfudgenuts

Sales Tax Hotel Tax School Tax Liquor Tax Luxury Tax Excise Taxes Property Tax Cigarette Tax Medicare Tax Inventory Tax Car Rental Tax Real Estate Tax Well Permit Tax Fuel Permit Tax Inheritance Tax Road Usage Tax CDL license Tax Dog License Tax State Income Tax Food License Tax Vehicle Sales Tax Gross Receipts Tax Social Security Tax Service Charge Tax Fishing License Tax Federal Income Tax Building Permit Tax IRS Interest Charges Hunting License Tax Marriage License Tax Corporate Income Tax Personal Property Tax Accounts Receivable Tax Recreational Vehicle Tax Workers Compensation Tax Watercraft Registration Tax Telephone Usage Charge Tax Telephone Federal Excise Tax Telephone State and Local Tax IRS Penalties (tax on top of tax) State Unemployment Tax (SUTA) Federal Unemployment Tax (FUTA) Telephone Minimum Usage Surcharge Tax Telephone Federal Universal Service FeeTax Gasoline Tax (currently 44.75 cents per gallon) Utility Taxes Vehicle License Registration Tax Telephone Recurring and Nonrecurring Charges Tax Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. We also were A Common Law Country! I have set up a place that the poor and middle class in the country can start to get some of this tax money back. It is our turn to have a piece of the action. Here is my way to get your loot back. Just googl EASY` STOCK`` CASH and hit the very first link. Go right to the PENNY STOCK page to see what the rich don't want you to know.